Business Directories

BoE cuts UK rates by a quarter point

London, February 7, 2008

The Bank of England cut interest rates on Thursday, as widely expected, in an attempt to shore up the British economy in the face of the global credit squeeze.

The bank lowered its key rate by a quarter percentage point to 5.25 percent, following a similar cut in December. All 60 economists polled by Reuters had forecast the move.

Policymakers have long held that they would welcome a gentle economic slowdown, but data pointing to a sharp housing market slowdown and crumbling consumer confidence have raised the risk of a hard landing.

The global economic environment has also deteriorated sharply. The Federal Reserve has already cut US rates by 125 basis points over the past month as data there have increasingly pointed to recession. - Reuters